9 Great reasons to invest in house and land packages
If you’re thinking about investing in property, then house and land packages provide some fantastic benefits which should not be overlooked.
House and land packages come in all shapes and sizes to suit families with children, established couples, professionals and downsizers looking for something a little smaller. They also appeal to all buyer types whether you are a first home buyer, owner occupier or investor.
So why do house and land packages make great investments? Here are our top nine reasons why you should invest in house and land packages.
9 Great reasons to invest in house and land packages
1) Affordability One of the great attractions to buying a house and land package in the first place is the affordability aspect. House and land packages tend to be part of a master-planned estate, so if you buy early enough in the initial stages, the entry prices will be far lower and more affordable compared to the later you buy, or if you buy an established house instead. You are also more likely to see your property grow in value as the rest of the stages sell out.
This not only attracts savvy investors who treat this property purchase as a long-term investment, but also first home buyers who are more likely to afford this property type to enter the property market.
2) Stamp duty savings When you buy a house and land package you will benefit greatly from massive stamp duty savings. This is because you are only required to pay stamp duty on the land value component, and not the house and land components due to the house having yet to be built. If you bought an established house then you would have to pay full stamp duty.
3) First home buyer grants available Depending on which state you buy in, you could be eligible for the first home owner grant. In Victoria, if your new house and land package is situated within regional Victoria then you could save yourself $20,000 with the first home owner grant. All you need to do is live in the home for the required amount of time to receive the first home owner grant and then turn the property into an investment property to reap the rewards of this.
4) It’s brand new Another key reason why you should invest in house and land packages is that they are brand new. People love new and new homes generally will attract better quality tenants and will be easier to rent compared to something older. As your house is brand new, you can also charge a premium rent, helping you to achieve higher returns on your investment property. People are also generally happy to pay a premium for something brand new.
5) Choice of block and design Buying a house and land package also allows you to choose the type of home you want. Choose the façade and the house design which best suits you and your future tenants will also help your property rent out better in the future. If you buy early enough, you may also be able to choose your finishes, fittings and fixtures for maximum appeal.
Compared to an established property, where you could face enormous competition come auction day, you also have more choice of blocks and have more chances to buy within a development.
6) Low maintenance costs Buying a brand new house and land package also provides you with lower maintenance costs. This is because it is a new build with brand new appliances which are less likely to break and cause problems in the first few years. If there are issues, then the building as well as fixtures and fittings are generally covered by the builder’s guarantee, which typically lasts for five years.
A new home will be built for modern day living and is more likely to be energy efficient, helping to reduce your energy bills and water bills.
7) Close to core amenities If you buy a house and land package as part of a master planned estate, then you are likely to have local amenities and conveniences close to your door. This includes good schools, retail, dining, transport and parklands. Having core amenities close to home or even within walking distance will make your home far easier to rent out and sell both today and in the future.
8) Depreciation and tax savings Of course, like other investment properties there are depreciation and tax savings available which can save you thousands of dollars. It’s best to organise a Quantity Surveyor to produce a depreciation report so you can determine what can and cannot be depreciated. The same goes for what tax savings are available. Many property investors do not take full advantage of all their tax savings available to them and could miss out on hundreds or even thousands of dollars every year. You should therefore use a good accountant to determine what expenses you can and cannot claim, especially as these tax deductions have recently changed in the State Budget.
9) Lifestyle appeal Buying a house and land package also makes a great investment property due to its lifestyle appeal. With nature, parklands and amenities all on your doorstep, tenants can really soak up their local community with their workplace easily accessible.
If you are looking for a quality investment property, then house and land packages should definitely be considered. It’s also worth noting that it is important that you do your thorough research first to ensure you buy in a good growth suburb that is likely to perform well and has essential amenities close by to remain attractive to future tenants.
Get in touch At iBuyNew, we have a large range of some stunning new house and land packages across Victoria, Queensland and New South Wales available to buy right now. If you are curious about investing in house and land packages in Australia, then why not talk to one of our expert Property Consultants at iBuyNew to find out more about all of our available property options.
Call us today on 1300 123 463.
Published on 13th of June 2017 by Marty Stanowich